Hopes of a resolution to the US-China trade dispute appear brighter. US President Donald Trump's recent comment that talks with his Chinese counterparts are very productive, and the release of Huawei Technologies CFO Meng Wanzhou on bail, have given the markets some relief. Recent reports suggest that Chinese officials even agreed to cut tariffs on imported cars by 15% from 40% following discussions on Monday, an announcement that allowed US carmakers and EU auto stocks to rally. Germany's Daimler (LON:0NXX), BMW (MI:BMW) and Volkswagen (DE:VOWG_p) flagship automotive companies bounced by +2.69%, +1.83% and +1.49% respectively.
Asian indices have been closing in positive territory and are green across the board. The Japanese Topix index gained +1.99%, bouncing back from an 18-month low, while Hong Kong's Hang Seng rose by +1.61% and China's mainland CSI 300 budged +0.34%. European equities are similar, with the Euro Stoxx +0.90, German DAX +0.70% and the French CAC40 +1.09%.
EUR/USD is currently trading at 1.1327, approaching 1.1340 short-term.
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By Vincent Mivelaz